Audinate Group Ltd. · ASX:AD8
Audinate — Investor Presentation (February 2022)
31 slides from Audinate's investor presentation, Feb 14, 2022
Slide 1: 1H22 Results
1H22 RESULTS Aidan Williams – Co-founder & Chief Executive Officer Rob Goss – Chief Financial Officer Authorisation: This document was approved by the Board of Audinate Group Limited 14 February 2022 1H22 Investor Presentation | 1
Slide 2: Overview of Audinate Today
Overview of Audinate Today Products World-leading supplier of Growing network digital media networking effect of Dante Dante comprises software and hardware that resides inside the audio for the Professional AV enabled products in and video products of Audinate’s Original Equipment Manufacturer indu
Slide 3: Gross profit growth continues
Gross profit growth continues US$m Gross Profit Variance +30.2% Financial Highlights Prior Corresponding Period 12,000 $11.2 11,000 $10.6 85.0% A$20.2M Revenue 31.6% 10,000 9,000 $8.5 $8.6 80.0% US$14.8M US$ Revenue 33.3% 8,000 $7.5 $7.5 $7.0 7,000 76.4% 75.6% Gross Margin % (1.7%) - $6.2 75.6%
Slide 4: Leading Global Supplier of Digital Media Networking
Leading Global Supplier of Digital Media Networking Total audio products per protocol 3500 3,301 “Dante continues to be the >A$1bn Total addressable market(1) 3000 dominant force” RH Consulting 2500 OEM brands shipping Dante 403 enabled products 2000 Dante enabled products 3,301 available on the mar
Slide 5: Strong progress on FY22 objectives
Strong progress on FY22 objectives FY22 Objectives Actions • 57 design wins – strong ongoing demand for Dante despite supply chain impacts Drive design wins for Dante video • 16 design wins relate to next generation software products and next generation software products • 14 Dante Video design wins
Slide 6: Supply chain status and impacts
Supply chain status and impacts Dante Demand Dante Products • Backlog continues to grow to all-time highs • Current chip commitments enough to meet demand for o Potential for some cancellation of OEM orders Brooklyn-II and Broadway in 2H22 o Uplift to backlog value from price increases • Launch of n
Slide 7: Dante Video Update
Dante Video Update Dante Virtual Webcam • Silex Video team acquired: Over the last 12 months, the addition of the Cambridge (UK) & • Currently in beta Silex teams have transformed Audinate’s video • Software to bring video into PC/Mac development capacity • Makes Dante AV source appear as a • Silex
Slide 8: Silex acquisition transforms Dante video
Silex acquisition transforms Dante video Strategic Rationale • Complements existing video software capabilities in Cambridge (UK) with hardware FPGA expertise • Critical mass in the European timezone – access to Background video engineering talent pools • Existing business with ~USD2.5M revenue base
Slide 9: Silex Product Set
Silex Product Set • Naturally complements Audinate’s offerings • Silex video technologies in combination with AD8 audio technologies offer a complete networked AV solution • Compression is an essential component in the solution • Video compression technology • Colibri (Silex Own), JPEG 2000, VC-2 HQ
Slide 10: Financial Performance
FINANCIAL PERFORMANCE 14 February 2022 1H22 Investor Presentation | 10
Slide 11: Chips, cards & modules drive revenue growth
Chips, cards & modules drive revenue growth Revenue (US$M) Dante units shipped ('000s) 14.8 13.9 409 412 3.8 347 11.1 11.1 3.5 145 10.3 10.0 168 9.3 269 276 2.3 246 254 8.4 1.6 3.4 158 1.6 213 6.8 1.9 88 98 6.2 1.2 186 74 91 5.0 1.1 148 78 0.8 127 10.3 10.8 72 0.7 48 267 8.5 8.6 241 8.0 7.6 47 6.9 7
Slide 12: Income Statement
Income Statement 1 US$ revenue increased 33.3% to U$14.8M with A$ revenue (A$’000s) 1H22 1H21 Change increasing 31.6% to A$20.2M 1 Revenue 20,226 15,372 32% 2 Gross margin remained relatively strong in 1H FY22 at 75.6% Gross profit 15,295 11,825 29% despite supply chain cost pressures. 2 Gross Margi
Slide 13: Additional revenue drives EBITDA growth
Additional revenue drives EBITDA growth 1 2 3 4 EBITDA (A$M) 1 Gross profit dollars improved due to a US$3.7M increase in revenue 2 # of employees increase from 116 (1H21) to 166 (1H22) 3 $0.3M increase in Opex as the team expands and travel recommences 1.9 1.8 2.0 1.7 1.1 1.2 0.1 0.2 4 $0.2M due di
Slide 14: Ongoing revenue growth reinvested in R&D
Ongoing revenue growth reinvested in R&D • Ongoing focus on innovation and R&D to maximise future growth opportunities • Operating leverage in the cost base is once again evident as additional revenue drives EBITDA growth Research and Development (A$M) Revenue, Cost Trends (A$M) 12 45% 80% 75% 40% 2
Slide 15: Cash-flow Statement
Cash-flow Statement 1 Operating cash receipts & payments are consistent (A$'000) 1H22 1H21 with the income statement and movement in working 1 Receipts from Customers * 20,081 14,918 capital. Payments to suppliers and employees * (19,449) (12,473) 2 Interest received 81 127 2 The 1H22 cash out-flows
Slide 16: Balance Sheet
Balance Sheet 1 Cash & term deposits of $60.3M, with no debt (A$’000s) 31 Dec 21 30 Jun 21 Change ($) 2 Trade receivables up $0.2M to $3.4M 1 Cash 33,335 38,429 (5,094) Term deposits 27,000 27,000 - 2 Trade and other receivables 3,387 3,199 188 3 Increased inventory balance due to raw material 2,105
Slide 17: Outlook
OUTLOOK 14 February 2022 1H22 Investor Presentation | 17
Slide 18: Continuing to drive adoption: FY22 Priorities
Continuing to drive adoption NEW: Manage ongoing supply chain challenges NEW: Integrate Silex Video Business FY22 1. Drive design wins for Dante video and next generation software products Priorities 2. Launch new Dante video software and cloud services products 3. Pursue initiatives to reduce adopt
Slide 19: 2H22 Outlook
2H22 Outlook • Record levels of demand, supply curtailed by current component shortages • 2H22 revenue driven by chip availability for Audinate and OEMs • US$ revenue growth expected for FY22 overall – albeit not at historical rates • Global supply chain uncertainty expected to continue impacting bo
Slide 20: Investment Highlights
Investment Highlights Global Market Attractive Financial Innovative Leader Profile Products • Dominant position as de- • Gross margins >75% • Broad intellectual property facto standard in audio supported by strong IP portfolio developed in networking Australia • Consistent historical • 13x market ad
Slide 21: Questions
QUESTIONS 14 February 2022 1H22 Investor Presentation | 21
Slide 22: Appendices
Appendices 14 February 2022 1H22 Investor Presentation Audinate Confidential | 22
Slide 23: Audinate is Driving the Transformation of AV
Audinate is Driving the Transformation of AV • Networked digital connectivity is Audinate Total Addressable Market (‘TAM’)* replacing traditional, point-to-point The TAM for digital audio networking is analogue cabling in the AV industry A$400m annually for chips, cards, Audinate share of Audio Mark
Slide 24: OEM Design Wins drive future revenue growth
OEM Design Wins drive future revenue growth OEM Product Buy Prototype Release New Pre-sales DESIGN WIN Design Dante Units Product Customer OEM OEM sells commits to Manufactures Dante- use Dante in more AV enabled AV new products products products • Design wins are a key step in the OEM sales cycle •
Slide 25: Accelerating OEM Adoption: Pipeline Growth
Accelerating OEM Adoption: Pipeline Growth OEM Brands shipping Dante-enabled Products 19% CAGR 403 371 growth in 360 328 OEMs 292 270 218 221 228 194 179 158 142 1H16 2H16 1H17 2H17 1H18 2H18 1H19 2H19 1H20 2H20 1H21 2H21 1H22 Audinate has grown to 403 OEM brands have 94 OEM brands are currently 531
Slide 26: Consistent Growth in Product Ecosystem
Consistent Growth in Product Ecosystem • Product ecosystem includes 3,301 Dante-enabled products and growing, with 531 OEMs • 30% CAGR in product ecosystem • 13x number of products than the next digital audio 3301 3123 networking technology 2909 • 165 products identified to be removed, product count
Slide 27: Dante Controller
Dante Controller Dante Controller • Free system setup tool • Downloadable from Audinate homepage • Registration required • Makes virtual wires • > 250,000 downloads • Manages audio and video signals • Simple & easy to use • Standard industry matrix view • Training provided via Dante Certification •
Slide 28: Dante Audio and Adaptors
Dante Audio and Adaptors Dante Audio Chips & Modules Brooklyn Broadway Ultimo Adaptors • Hardware based implementations for a range of product counts and price points • Transports uncompressed audio signals across standard computer networks Dante Adaptors • Connects legacy equipment to Dante (mostly
Slide 29: Software Products
Software Products Dante Application Library (DAL) • Dante for PC/Mac applications Ceiling Microphone • Simple way for software developers Software products enable: Dante IP Core (today) / to add Dante to their products • Launched June 2019, • Wider proliferation, thru lowered Dante Embedded Platform
Slide 30: Dante Domain Manager
Dante Domain Manager Dante Domain Manager Secure & Manage Dante Systems • Security • Usernames/passwords identify users • Roles control access to the system • Scalability • Create Dante systems spanning campus networks • Group Dante devices into logical managed systems • Visibility • Centralise Dant
Slide 31: Important notice and disclaimer
Important notice and disclaimer Disclaimer Past performance The non-IFRS measures do not have any standard definition under IFRS and may be calculated differently To the maximum extent permitted by law, none of the Past performance information, including past share price information, given in this p
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